The dollar amount of fixed-rate commercial real estate (CRE) loans that were liquidated in February dropped by 54% from January's level, according to data released by Trepp LLC. The January total had been the highest level in the 13 months since Trepp had begun compiling this number.
In total, 106 CRE loans with a total balance of $815 million were liquidated in February. The losses on those loans were about $292 million, representing an average loss severity of 35.9%. That loss-severity value is below the average loss severity of 43.8% over the last 12 months, according to Trepp. The special servicers have been liquidating at a rate of about $944 million per month over that time, and Trepp states the $815 million in liquidation represents a below average reading.
SOURCE: Trepp LLC
